GateHouse Media CEO out, contract specifies nearly $3.5 million payout, including $2.2 million in cash

Gatehouse Media CEO Kirk Davis made the decisions to close the Carthage Press and dozens and other newspapers across the United States, depriving those communities of their most valuable news sources.

Davis put thousands of journalists out of work, many of whom had been with their newspapers for decades. For their loyal employment, the reporters and editors received a barebones severance and many saw their careers in journalism come to a close.

And let's not forget out, he was one of the guiding forces behind the company's bankruptcy a few years back.

Now it appears Kirk Davis is out of a job, thanks to the impending merger between GateHouse Media and Gannett.








The CEO of New Media, GateHouse's parent company, sent the following memo to employees Thursday:

TO: GateHouse Media employees
FROM: Mike Reed
RE: Kirk Davis
Date: October 31, 2019

I am writing to inform you that Kirk has shared with me that he intends to leave New Media upon the close of the Gannett acquisition. I know this decision did not come easily for him; his commitment to our company and each of you is unmatched. I have worked very closely with Kirk for the past 13 years and not only have we become great business partners, but also great friends.

I want to personally offer my deepest appreciation and respect for Kirk’s work and leadership over the years. From our roots as a small collection of local newspapers, we’ve become one of the largest publishers of locally-based media in the United States. We are nationally recognized for our growth in digital marketing services and local and national events and most importantly, celebrated for our multi-platform, local journalism. 

Kirk’s leadership, building and guiding a high performing organization, has led to our opportunity with Gannett. I know without doubt that Kirk will be incredibly successful in his next endeavor and we wish him all the best in that effort. 

I know Kirk will want to share some thoughts with you before he departs. And, we will provide channels for staff to acknowledge and commemorate Kirk’s service to GateHouse.

Please join me in thanking Kirk for his many contributions to us and our company and wishing him all the best on his next adventure.

There had already been speculation that there would be no place in the new company once the GateHouse buyout of Gannett is completed.

Davis won't be feeling any financial pinch due to his unemployment. A proxy statement filed in April by New Media details a nearly $3.5 million payout Davis will receive:

Pursuant to his employment agreement, if Mr. Davis’ employment is terminated by the Company other than for Cause or is terminated by him for Good Reason following a change in control, in each case within the Protection Period, then he shall be entitled to:
(a) the Accrued Benefits;

(b) an amount equal to 24 months base salary plus “Average Monthly Bonus” (as defined below) payable in accordance with the Company’s customary payroll practices;

(c) a pro-rated bonus for the year of termination;

(d) vesting of all restricted stock awards that are not vested as of the date of termination, if the date of termination is within 12 months of the change in control;

(e) up to 6 months of outplacement services; and

(f) continuation of health benefits at the same levels until the earlier of: (i) the time it takes Mr. Davis to become eligible for benefits from a new employer; or (ii) 12 months from the date of termination

Imagine what kind of settlement Davis would have received if he actually had any idea of what he was doing.